JOB ORDER CONTRACTS (JOC) PROGRAM
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1 City and County of San Francisco Department of Public Works JOB ORDER CONTRACTS (JOC) PROGRAM JOC-J23 General Building Services (ID NO. JCC14023) B-License JOC-J24 General Engineering Services (ID NO. JCC14026) A-License Pre-Bid Conference Monday, September 16, :30 P.M. 1
2 Agenda Staff and Attendee Introductions Contract Information The What and Why of Job Order Contracting SFDPW Job Order Contracts Issued The Contract Documents JOC Contract Conditions Local Hire and LBE Subcontracting Requirements City And County of San Francisco Programs Analyzing The Bid Process Adjustment Factor Considerations Bid Information 2
3 Contract Information JOC-J23 General Building Services (B-License) Work To Be Performed In: City And County Of San Francisco The Scope Of Work May Include Repair, Alteration, Modernization, Maintenance, Rehabilitation, Demolition And Construction Of Infrastructure, Infrastructure, Buildings, Structures, Or Other Real Property Contract Minimum Value - $50,000 Contract Maximum Value - $3,000,000 City Has the Option to Add an Additional $1,500,000, For a Potential Maximum Value of $4,500,000 Fixed Term Contract Three Years With an Option to Extend an Additional Two Years To Complete The Work Of Issued Task Orders, But no New Task Orders Will Be Issued After the First Three Years 3
4 Contract Information JOC-J24 General Engineering (A-License) Work May Be Performed In: San Francisco, San Mateo, Alameda, San Joaquin, Stanislaus, Tuolumne Counties The Scope Of Work May Include Repair, Alteration, Modernization, Maintenance, Rehabilitation, Demolition And Construction of Infrastructure, Rights-of-Way, Retaining Walls, Parks, Playgrounds, Medians And Other Similar Works, Structures, or Other Real Property Located In San Francisco and East Bay To Hetch Hetchy Contract Minimum Value - $50,000 Contract Maximum Value - $3,000,000 City Has the Option to Add an Additional $1,500,000, For a Potential Maximum Value of $4,500,000 Fixed Term Contract Three Years With an Option to Extend an Additional Two Years To Complete The Work Of Issued Task Orders, But no New Task 4 Orders Will Be Issued After the First Three Years
5 Contract Information JOC-J23 Class B" License Required To Bid LBE Subcontracting Goal Is 25% JOC-J24 Class A License Required to Bid LBE Subcontracting Goal Is 15% Bid Discounts May Be Applied Per San Francisco Administrative Code (SFAC) Chapter 14B. Bidder(s) Shall Have Completed A Minimum Of 5 Projects Similar In Scope And Complexity Or Greater, In The Past 10 Years 5
6 What is a Job Order Contract? A Job Order Contract is a Competitively Bid, Indefinite Quantity Contract Used for Small, Multi-Trade, Minor Construction, Repair and Alteration Projects San Francisco DPW May Accomplish A Series Of Projects With A Single, Competitively Bid Contract Awarded Before The Projects Are Identified. Contractors Must Bid Adjustment Factors To Pre-set Unit Prices. Work Is Accomplished By Issuing Task Orders To The Successful Contractor During The Term Of The Contract Many Current Job Order Contracts Major Cities : Chicago, LA, Miami, San Diego, New York and SF California Universities: UCs and CSUs Counties: Santa Clara, San Mateo, San Luis Obispo, Contra Costa, Solano, Sonoma, Alameda, Sacramento, Tulare, Los Angeles and Ventura USPS, Smithsonian, UCSF Medical Center JOC Is Another Tool in City and County of San Francisco s Tool Box 6
7 Why Job Order Contracts? SFDPW Has Limited Options for Completing Small Construction Projects The Traditional Design-Bid-Construct Procurement Can Be Slow and Costly Relative to Project Size 6-18 Months From Project Identification, Final Design, Bid and Award of Contract, to Notice to Proceed Owner and Contractor Can Often Have Adversarial Roles JOC Is An Efficient and Cost Effective Solution Faster Response Design Time Can Often be Condensed Contractor Can Propose From a Narrative Scope Document The JOC Program is Managed by a Dedicated Team Contractor Success is Based Upon A Partnership with SFDPW 7
8 JOCs Issued SFDPW Job Order Contracts Issued Since 2003 B-License Contracts (15) ACF Bids Received GC1_6280A /3/03 GC2_6281A /3/03 GC3_6282A /3/03 GC5_6411A /8/04 GC7_ 6428A /21/05 GC8_6445A /2/06 GC9_6486A /15/07 GC10_6487A /25/07 GC12_6800A /30/08 J15_6510A /25/10 J16_6511A /1/10 J18_6513A /2/11 J19_JOC-J /11/12 J20_JOC-J /18/12 J22_JOC-J /20/13 8
9 JOCs Issued SFDPW Job Order Contracts Issued Since 2003 A-License Contracts (5) ACF Bids Received RW1_6413A /8/04 RW2_6442A /28/06 RW3_6900A /23/08 J17_6512A /10/10 J21_JOC-J /11/12 B/C39-License Contracts (2) ACF Bids Received RF1_6412A /8/04 RF2_6500A /23/08 9
10 JOC Contract Documents Project Manual Procurement Rqmts. Notice to Bidders Bidders Qualifications Bid Forms and Supplements Subcontracting Qualifications Statement Contracting Rqmts. Agreement Form Bonds General Conditions Liquidated Damages Insurance Requirements Local Hiring Requirements Payment Procedures JOC - General Conditions Section Contract Overview Definitions Procedure for Ordering Work Non-Pre-Priced Language Proposal Preparation Issuing Work Supplemental Task Orders 10
11 JOC Contract Documents Construction Task Catalog (CTC ) Catalog of ~275,000 Pre-Priced Construction Tasks and Task Modifiers Organized by CSI MasterFormat 2004 Prices Contain SF Prevailing Wages, Material and Equipment Costs Customized for SFDPW Job Order Contracts 11
12 JOC Contract Documents Technical Specifications Specifies Quality of Materials and Workmanship Organized by CSI MasterFormat 2004, Divisions 1-43 Specifications are Linked to Tasks in CTC Customized for City and County of San Francisco 12
13 JOC Contact Conditions Award is Based Upon Competitive Bids, and Contractor Experience / Qualifications Must Bid Adjustment Factors to the CTC Unit Prices, Calculated to 4 Decimal Places Adjustment Factors Are Prorated, and The Sum of the Prorated Factors (Award Criteria Figure) Determines The Low Bid Adjustment Factors Apply to All CTC Items Adjustment Factors Include Indirect Costs, Profit and CTC Price Variation CTC is Fixed for the Duration of Contract Term Adjustment Factors Are Updated on Contract Anniversary Using Construction Cost Index (CCI) in Engineering News Record 13
14 San Francisco Construction Cost Index Percent Change In San Francisco ENR CCI ~ 2.9% ~ 1.7% ~ 3.9% ~ 2.7% ~ 2.3% ~ 5.0% ~ 4.9% ~ 4.8% ~ 4.9% ~ 2.0% ~ 2.4% ~ 2.4% 14
15 JOC Contact Conditions Section BID FORM: JOC-23 Based on Working Hours: Normal Working Hours (NWH): 7:00am to 5:00pm M-F Other Than Normal (OTN) Working Hours: All Work Outside of Normal Working Hours JOC-24 Based on Working Hours and Region of Work : Normal Working Hours (NWH): 7:00am to 5:00pm M-F Other Than Normal (OTN) Working Hours: All Work Outside of Normal Working Hours Region of Work 15
16 JOC Contact Conditions CTC is Based on San Francisco Prevailing Wages Contractors Must Pay Prevailing Wages, Reported in On-Line Elation Payroll System Differing Site Conditions May Result in a Supplemental Task Order Can Be Initiated by SFDPW or Contractor Contractor Cannot Refuse Task Orders Prior to Bidding, SFDPW Cannot: Identify or Commit to Specific Projects or Locations Identify or Commit to Specific Scopes of Work, Quantities or CTC Tasks 16
17 JOC Contact Conditions Within 10 Working Days After The Bid Date, The Low Bidder, and Any Other Bidder So Requested, Shall Submit To The Job Order Contract Manager a Experience Statement Form (Section ) For Each Person or Entity Who Will Be Designated As Key Team Members or Listed Subcontractors Team Member Who Will Manage Overall Contract. Team Member(s) Who Will Prepare Task Order Proposals and/or Manage Individual Task Orders. Contractor s General Construction Superintendent(s) 17
18 JOC Contact Conditions Contractors Can Hold Only One SFDPW Job Order Contract at a Time, Until at 90% of Current Capacity, or Within 120 Days of Contract Term Payment & Performance Bonds - $1,500,000 50% of the Maximum Contract Value Bond is Increased As Awarded Work Reaches Contract Threshold Superseding Bond Bid Bond 10% of Maximum Contract Value $300,000 18
19 JOC Contact Conditions Retention 10% Per Task Order, for Projects Over 45 Days Payable After Notice of Completion Is Recorded and All Required Documentation for the Task Order Has Been Received And Approved by the City No Substantial Completion In JOC, Projects Are 100% or Incomplete One Payment for Projects Completed Within 45 Days Liquidated Damages $800/Day Unless Noted Otherwise, for Each Task Order 19
20 JOC Contact Conditions Contractor Insurance SECTION INSURANCE REQUIREMENTS Comprehensive or Commercial Form General Liability Insurance $2,000,000 - General Aggregate $1,000,000 - Each Occurrence $1,000,000 - Personal Injury $1,000,000 Commercial Automobile Liability Sections 1.3, 1.4 and 1.5 Define Additional Coverage and Requirements 20
21 The Local Hiring Ordinance Local Hiring Policy The San Francisco Local Hiring Policy For Construction, San Francisco Administrative Code Section 6.22(G), Will Apply To Any Awarded Contract Refer To Section For Information Regarding Local Hiring Requirements, Including But Not Limited To Local Hiring Forms That Must Be Submitted After Contract Award and Prior To Notice To Proceed In Addition, OEWD Maintains a ''Q&A'' Regarding The Policy, Available On OEWD's Website at: 21
22 Subcontractor Listing Requirement Subcontractors Are Listed at Time of Bid Section / PROPOSED SUBCONTRACTOR FORM Contractor Must List Subcontractor(s) for Core Trades Work That Will Not Be Self-Performed, But Bidder is not limited to Listing Only for Core Trades May List Multiple Subcontractors According to Project Value or Type of Work, or Work Location Only Small-LBE And Micro-LBE Firms Shall Be Utilized To Meet The Subcontracting Goal. Using Only San Francisco Certified LBE Contractors SBA-LBEs Shall Not Be Used To Meet The Goal. The Listed Subcontractor Is Always The First Option, Per California State Contract Code LBE Goals JOC-J23 is 25% JOC-J24 is 15% 22
23 Estimated Core Trade Percentages JOC-J23 Section SUBCONTRACTOR CORE TRADES 23
24 Estimated Core Trade Percentages JOC-J24 Section SUBCONTRACTOR CORE TRADES 24
25 City and County of San Francisco Programs CMD Construction Monitoring Division OEWD - Local Hiring Ordinance OLSE - Office of Labor Standards and Enforcement City Surety Bond Program 25
26 Analyzing the Bid Process 26
27 JOC Execution Procedures Joint Scope Meeting - Develop Scope of Work SFDPW Issues Request for Task Proposal/ Detailed Scope of Work Contractor Develops Proposal Select Tasks and Estimate Quantities Collect and Transmit Backup for Non-Pre-Priced Items Prepare Incidental Drawings Develop Schedule & Subcontractor Submission SFDPW Reviews and Approves Contractor s Proposal SFDPW Issues Lump Sum, Firm Fixed Price Task Order to Accomplish the Detailed Scope of Work 27
28 CTC Structure The CTC Is Divided Into 43 Sections in Accordance With the Construction Specification Institute MasterFormat Two Unit Costs for Many Tasks, Great for In-Kind Replacement One for Installation One for Demolition Many Unit Costs Have Modifiers Which Qualify the Task and Supplement the Unit Price Quantity Adjustments Economy of Scale Quality of Material(s) Position of Work: Confined or Restricted Working Space Associated Items or Accessories 28
29 CTC Structure Section 00 Using The Construction Task Catalog The Unit Prices Include: Labor Through a Working Foreperson, Equipment, Material Costs Complete and In-Place Construction: Delivery, Fasteners, Caulking, Testing & Calibration, Etc. The Adjustment Factors Include: Overhead, Bonds, Insurance, Profit, Subcontractor Costs, Taxes, Fringe Benefits, Financing, Business Risk, Etc. Construction Related Costs: Permit Services, Submittal Preparation, Incidental A&E, Vehicles, Temporary Utilities, Excess Waste, Protection of Surfaces, Personnel Safety Equipment, Daily & Final Clean-up, Etc. General Interpretations: Working Height up to 14 Ft, Restricted Working Space, Assembly vs. Components, Etc. 29
30 Analyzing the CTC Most Common and Accurate Method Non-Pre-Priced Items Work Required by the Detailed Scope, But Line Item(s) Are Not in the CTC Read Section General Conditions, Section 6.05.B. Specific Instructions for Non-Pre-Priced Tasks Other Methods Use a Completed Project With Known Costs Price From the CTC to the Greatest Possible Extent Add-On Indirect Costs, Overhead and Profit Evaluate a Sampling of the Anticipated Items Get Subs to Evaluate Their Sections of the CTC Do Not Rely Upon Evaluation of Another CTC This Is A New Contract and New Construction Task Catalog 30
31 Preferred Method - Scope of Work 1) Install New Galvanized Steel Piping System Above Existing T-Bar Ceiling System. Remove Ceiling Panels and Grid As Necessary To Install work. Patch and Repair to As-Found Condition 2) Relocate Existing Fire Sprinkler System Heads to Correct Grid Pattern in Compliance With Fire Marshal Directive (Engineering Work and Permit N.I.C.) Hydrostatic Test System 3) Remove And Reinstall 10 Ea. 2 X 4 Fluorescent Lay-in Light Fixtures 4) Replace Approx. 450 SF of Acoustical Ceiling Tile. Paint Area of Removed Plywood Panel and Install New #10 Fire Extinguisher 31
32 Preferred Method CTC Items 32
33 Preferred Method CTC Items 33
34 Preferred Method CTC Items 34
35 Calculating The Adjustment Factor CTC Price = $26, Actual Direct Costs (Subcontractor or In-House) General Requirements = $ 2, Finishes = $ Specialties = $ Mechanical = $ 22, Electrical = $ 1, Total Direct Cost = $ 25, CTC Price / Total Direct = 26, / 25, = For This Example, The CTC Provides 101.9% of DIRECT COST 35
36 Adjustment Factor Overhead Costs Overhead Costs - 8% to 12% Mobilization Project Management Joint Scoping Proposal Development Permit Procurement Labor Submittals and Shop Drawings Site Superintendence General and Administrative Subcontractor OH&P Bonding and Insurance Vehicles and Gas Consumables 36
37 Calculating The Adjustment Factor Contractor Costs Direct 10% 6% (x Direct) = = $ 25, $ 2, = $ Contractor Price = $ 30, CTC Price = $ 26, Contractor Price Divided By CTC Price (30, / 26, = ) ADJUSTMENT FACTOR = 1, EXAMPLE ONLY! 37
38 Example for JOC-J23: Award Criteria Figure Formula Line Line Normal Working Hours Adjustment Factor Multiply Line 1.0 by (80)% Other Than Normal Working Hours Adjustment Factor Multiply Line 2.0 by (20)% Add Lines: 1.0 and EXAMPLE: This is the Award Criteria Figure, Calculated to Four (4) Decimal Places ACF=
39 Adjustment Factor Considerations Contractor Performance is Directly Related to Volume of Work: JOC Is a Performance Based Contract Maximize Value of the Contract by Performing at a High Level Prepare Defendable and Complete Proposals Quality Staff, Timely Completion, Warranty Performance Responsive, Defendable Proposals Price Proposal, Schedule, Drawings/Sketches, Complete Submittal Packages and Subcontractor Listing Subcontractor Capability Quality of Performance and Workmanship Occasionally Paying Higher Prices for Superior Craftsmanship 39
40 Adjustment Factor Considerations There Are No Change Orders to Improve the Margin Contractor Absorbs Price Fluctuations During Contract Term Analyzing the CTC Adjustment Factors Updated Every 12 Months after the Certification Date of the Contract Is the Book Balanced? - Evaluate the Risk of Losers Accuracy and Quantity of Projects Evaluated Low Adjustment Factors Can Lead To Adversarial Relationship Reduced Volume / Lower Task Order Values No Option Period / Extension of Contract 40
41 Possible Risks Prepare Proposals for Some Projects That Will Be Cancelled Lose Money on Some CTC Items or Projects Experience a Lead Time Before Receiving a Positive Cash Flow Experience Interruptions in Work Flow Experience Delays in Task Order Issuance for Budget Adjustments and Procedures 41
42 The Rewards JOC Can Be Profitable Proportional to Contractor s Performance Good Performance Can Create a Steady Flow of Work Continuing Relationship With SFDPW Partnership with The SFDPW Expand Professional Relationships Don t Have to Chase Work, the Master Agreement is In Place Professionally Rewarding Partner in Scope Development Opportunity to Apply Construction Expertise 42
43 How To Obtain The Bid Package Download Digital Files of Bid Documents, Plan Holders List and Addenda at No Cost From: Or In CD Format From Contract Administration Division, 1155 Market Street, 4th Floor, San Francisco, CA 94103, Telephone Digital Files Of Bid Documents Include The Project Manual, The Construction Task Catalog and Technical Specifications Addenda Will Be Distributed By Only To Plan Holders With addresses, and Will Be Posted at The City's Website Address: 43
44 Contract Questions Questions: Document QUESTIONS ON BID DOCUMENTS/QBD Send To: SFDPW Project Controls and Services 30 Van Ness Avenue, 5th Floor San Francisco, CA Tel: Attention: Jason Chin 44
45 Bid Opening JOC-J23 (I.D. No. JCC14023) JOC-J24 (I.D. No. JCC14026) October 2, 2013, Until 2:30 PM 1155 Market Street, 4th Floor San Francisco, CA
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